News Release:
Exhibit 99.1
Contact:
|
Brian E. Powers
HICKOK INCORPORATED
10514 Dupont Avenue
Cleveland, Ohio 44108
216/541-8060
|
August 15, 2016
FOR IMMEDIATE RELEASE
|
HICKOK INCORPORATED REPORTS THIRD QUARTER
AND NINE MONTH RESULTS
CLEVELAND, OH,
August 15 Hickok Incorporated (OTC
Pink: HICKA), a Cleveland
based supplier of products and services for the automotive, emissions
testing, locomotive, and aircraft industries, today reported operating
results for the third quarter and nine months ended June 30, 2016.
For the quarter ended June 30, 2016, the Company
recorded a net loss of $8,095 or $.01 cents per share, compared with
net
income
of $109,631 or $.07 cents per share, in the same period a year ago.
Sales
in the
third quarter were $1,530,244, compared with $1,804,614 a year ago. The
current
year third quarter benefited from a single moderate size OEM order
while the
prior year third quarter benefited from two moderate size OEM orders.
The
addition of Federal Hose Manufacturing LLC (Federal Hose) on July 1,
2016 is
expected to add significant sales and earnings during
the fourth quarter of fiscal 2016.
In the first nine months, the Company reported a net loss of $519,728
or $.32
cents per share, compared with a net loss of $437,688 or $.27 cents per
share, in
the same period a year ago. Sales were $3,953,740, compared to
$4,058,014 a
year ago.
Robert L. Bauman, President and CEO, said, “Our third quarter was
essentially
break-even and the core Hickok fourth quarter is expected to be a
little weaker
but our total fourth quarter is expected to be substantially stronger
due to
the addition of Federal Hose on July 1, 2016 after a number of years of
negotiations.” He also added, “Federal Hose has a history of profitable
operations that I believe will allow the Company to execute a number of
strategies that were not within our reach previously. In addition, the
acquisition should add significant sales and earnings during the
Company's
fourth quarter of fiscal 2016 and for years to come."
Backlog at June 30, 2016 was $1,002,000
versus a backlog of $1,391,000
a year earlier. Included in the June 30, 2016 backlog is $345,000 of
flexible hose orders. The core business backlog decreased by
approximately $734,000 due primarily to decreased
orders for diagnostic products to automotive OEM's of approximately
$844,000 and aftermarket products of approximately $18,000, offset in
part
by an increase in orders for indicator products of approximately
$128,000. The Company anticipates that approximately 78% of the current
backlog will
be shipped in the last quarter of fiscal 2016.
The Company's current assets at June 30, 2016 of $3,051,823 are
2.3 times current liabilities, long-term debt $151,964 and working
capital is $1,724,292. These compare to June 30, 2015 current assets of
$2,868,975 that were 3.1 times current liabilities, no long-term debt
and working capital of $1,934,888. At June 30, 2016 shareholder's
equity was $2,117,462 or $1.29 per
share.
Hickok provides products and services primarily for the automotive,
emissions testing, locomotive, and aircraft industries. Offerings
include the development, manufacture and marketing of electronic and
non-electronic automotive diagnostic products used for repair and
emission testing. The Company also develops and manufactures indicating
instruments for aircraft, locomotive and general industrial
applications. In addition, the recent acquisition of Federal Hose
will add the manufacture and distribution of flexible
metal and silicone hoses to the Company's offerings.
Certain statements in this news release, including discussions of
management's expectations for fiscal 2016, constitute "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Actual results may differ from those anticipated as
a result of risks and uncertainties which include, but are not limited
to, Hickok's ability to effectively integrate Federal Hose and manage
the larger operations of the combined business, effectively develop and
market new products, overall market and
industry conditions, the Company's ability to capitalize on market
opportunities, the Company's ability to satisfy its interest payments
and obtain cost effective financing
as well as the risks described from time to time in Hickok's reports as
filed with the Securities and Exchange Commission.
HICKOK INCORPORATED
Consolidated Income Statement (Unaudited)
|
3
MONTHS |
9 MONTHS
|
Period
ended June 30
|
2016
|
2015
|
2016
|
2015
|
Net sales
|
$1,530,244
|
$1,804,614
|
$3,953,740
|
$4,058,014 |
Income (loss) before Income tax
|
(8,095)
|
109,631
|
(519,728)
|
(437,688) |
Income (recovery of) taxes
|
-0-
|
-0-
|
-0-
|
-0- |
Net income (loss)
|
(8,095)
|
109,631
|
(519,728)
|
(437,688) |
|
|
|
|
|
Basic income (loss) per share |
(.01)
|
.07
|
(.32)
|
(.27) |
Diluted income (loss) per share
|
(.01)
|
.07
|
(.32)
|
(.27) |
|
|
|
|
|
Weighted average shares outstanding
|
1,638,215
|
1,638,215
|
1,638,215
|
1,638,215 |